What Happens if Your New Construction Home Is Delayed?

By Steven J. Thomas | Refind Realty

Introduction

Delays happen. I’ve helped dozens of clients through the highs and lows of building a new construction home. When your timeline gets pushed back, it’s frustrating—but it’s not the end of the world. The key is knowing what to expect, what your rights are, and how to stay in control of the process. Let’s break it down.

Common Reasons for Construction Delays

Most delays aren’t caused by one thing. It’s usually a mix of factors:

• Weather: Rain and storms in DFW can stall framing, roofing, or foundation work

• Labor shortages: Builders are still catching up from post-pandemic workforce gaps

• Material delays: Supply chain issues and backorders on items like windows, HVAC units, or appliances

• City inspections: Missed or delayed inspections can halt progress

• Change orders: Upgrades and design changes made after construction starts can add days or weeks

What Happens Next: Timeline and Communication

If your builder notifies you of a delay, here’s what typically happens:

1. New completion estimate

2. Updated timeline in writing

3. Option to review your contract’s extension terms

Most builders will give weekly or biweekly updates, but if they don’t, ask for one. As your agent, I stay in touch with the builder and construction manager so you're never guessing what's going on.

Do You Still Have to Close on Time?

In most contracts, delays are built in. Builders usually include a “grace period” or extension window that allows them to push closing without penalties.

But here's what you should check:

• Builder’s contract language: Some give 30 to 90 days of flexibility

• Appraisal timeline: If the delay is long, your lender may need a new appraisal

• Interest rate locks: Check with your lender if your rate lock might expire before closing

Pro tip: Some lenders offer one-time rate lock extensions. It’s worth asking early.

What Happens If You Already Sold Your Current Home?

This is where it gets tricky—but it’s not unmanageable.

Options to bridge the gap:

• Lease-back from the buyer of your old home

• Short-term rental or corporate housing

• Staying with family to avoid multiple moves

• Temporary lease of the new home (rare but possible)

I always help clients map out a backup housing plan before closing so you're not scrambling.

Need guidance? Check out this New Construction Webinar where I cover common delay scenarios.

Can You Walk Away from the Contract?

Only if certain conditions apply. Every builder contract is different, but typically:

• You cannot cancel just because of delays if they’re within the allowed window

• You can walk if the delay exceeds the contract grace period or if the home fails final inspections with no remedy

This is why it's important to have someone like me review your builder contract with you from day one.

Do You Get Any Compensation?

Compensation is rare unless the builder:

• Misses guaranteed delivery dates stated in writing

• Fails inspections repeatedly or can’t complete key phases on time

• Offers goodwill incentives (e.g. closing cost credits, upgrades)

Some builders may offer credits if delays were caused by their own mismanagement, but it’s case-by-case.

How to Protect Yourself

Here’s what I recommend to every buyer:

1. Work with an experienced agent who knows builder contracts

2. Track milestones like foundation, framing, inspections, and walkthroughs

3. Lock in financing with room for extension

4. Keep backup housing options ready

5. Ask about the builder’s historical timelines

Check out the New Construction Home Guide for more tips.

My Clients Know What to Expect

I’m in regular contact with your builder, lender, and title company to make sure delays don’t become disasters. If something falls behind, I immediately work on a solution so you’re never stuck without a plan. That’s the benefit of working with someone who’s done this hundreds of times.

Conclusion

Delays are frustrating, but they don’t have to derail your home buying journey. With the right info and the right support, you can keep your move on track.

Ready to make a move?
Download the Lone Star App here: https://lonestarliving.hsidx.com/@sthomas
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FAQs

1. Why is my new construction home delayed?
Most delays are caused by weather, inspections, labor shortages, or material backlogs.

2. Can I cancel my contract because of a delay?
Only if the delay exceeds the builder’s contractual grace period or the builder fails to meet certain obligations.

3. What happens to my interest rate if the closing is delayed?
You may need to request a rate lock extension from your lender. Some extensions are free, others have a cost.

4. Do I get compensated if my new home is delayed?
Builders rarely offer compensation unless they miss guaranteed deadlines. It depends on the contract.

5. Where do I stay if I already sold my old home?
Options include lease-backs, short-term rentals, or temporary housing. I always help clients prepare for this.

6. What can I do to prevent surprises?
Work with an experienced agent, monitor build progress, and have a backup housing plan.